The market equilibrium price for two-bedroom apartments in Nashville is $1,200. What will happen to the
apartment market in this city if the city government decides to set the price for two-bedroom apartments at
$800 in an attempt to make apartment living more affordable for local families?
Families will benefit, as more of them will be able to rent an apartment, and landlords' revenues
will remain the same, as the lower prices will be counteracted by higher occupancy.
Landlords will receive higher revenues, as more families will live in apartments.
Landlords will lose revenue, even though more families will move into apartments.
Landlords' revenues will fall, and fewer families will live in apartments.